On September 8, the Federal Executive submitted the Economic Package for 2026, which includes the General Economic Policy Guidelines, the Federal Revenue Law (LIF), the Draft Federal Expenditure Budget, the Federal Fiscal Code (CFF), the Special Tax on Production and Services Law (IEPS), and the Federal Duties Law (LFD). These were sent to the Chamber of Deputies for review and, if approved by Congress, would take effect on January 1, 2026.

The following is an executive summary of the most relevant aspects of the Economic Plan and Miscellaneous Tax Measures for fiscal year 2026:

General Objectives

• GDP growth projected between 1.8% and 2.8% for 2026.
• Estimated inflation for 2026: around 3% year-over-year.
• Projected exchange rate: approximately MXN $18.9 – $19.7 per US dollar.
• Fiscal deficit expected at approximately 3.6% – 4.1% of GDP.
• Public debt estimated at 52.3% of GDP in 2026.

Revenues / Federal Revenue Law (LIF)

• Estimated budget revenues for 2026: ≈ MXN 8.7 trillion.
• Tax revenue as a share of GDP is projected at 15.1%, a historic record.
• No broad tax reform is proposed; instead, the strategy focuses on improving efficiency, expanding the tax base, and strengthening law enforcement.

Key proposed changes to the Federal Revenue Law (LIF) for 2026

• Surcharge rates. Modifications would be made to surcharge rates in cases of extensions for the payment of tax liabilities, as follows:

a) From 0.98% (2025) to 1.38% (2026) per month on outstanding balances. In the case of late payments, the rate increases to 2.07%.

b) In accordance with the Federal Tax Code (CFF), if payment in installments is authorized, the surcharge rate would apply as follows:

• • • For installment plans of up to 12 months, the surcharge rate would be 1.42% per month.
    • For installment plans of 12 up to 24 months, the applicable surcharge rate would be 1.63% per month.
    • For installment plans longer than 24 months, as well as for deferred payment plans, the applicable surcharge rate would be 1.97% per month.

Proposed Changes to Tax Rules

LISR (Income Tax Law)

• Withholding on interest paid by financial institutions. For interest paid to Mexican resident individuals and legal entities, the tax withholding would be calculated by applying an annual rate of 0.90% to the principal amount.
• Withholding on the sale of goods and services via digital platforms. A 4% withholding would apply to legal entities earning income from the sale of goods or provision of services through technological platforms, apps, and similar means.

Additionally, a 20% withholding would apply to legal entities that do not provide their Mexican Tax ID (RFC) to such platforms.

For individuals operating via platforms and taxed under the Simplified Trust Regime (RESICO), withholding would be standardized at a maximum rate of 2.5%.

• Uncollectible loans for credit institutions. The special rule in Article 27, section XV, third and fourth paragraphs of the LISR regarding “notorious practical impossibility of collection” would be repealed, thus aligning the tax treatment of uncollectible loans for credit institutions with the general regime.
• Non-deductibility of contributions to IPAB. Multiple banking institutions would no longer deduct contributions to the Institute for the Protection of Bank Savings (IPAB). This would generate additional government revenue (≈ MXN 10 billion) by eliminating that benefit for banks.
• Capital repatriation. Individuals and legal entities repatriating lawful funds from abroad and maintaining them in the country for a minimum period would pay Income Tax at 15%.
• RESICO supports the farming and husbandry sector. Taxpayers in this regime dedicated to the farming and husbandry sector would only pay Income Tax on income exceeding MXN 900,000 per year.

VAT Law (IVA)

• VAT withholding by domestic and foreign digital intermediation platforms. Withholding obligations would apply as follows:
  • Legal entities, under the same terms as individuals: 50% withholding when they provide their RFC and 100% when they do not.
  • Non-residents without a permanent establishment who sell goods in Mexican territory: 100% withholding.
  • Sellers of goods/services in Mexico who receive payments in bank or deposit accounts abroad: 100% withholding.
• No changes to the VAT rate or core structure. The 0% rate for basic goods/foodstuffs would be maintained as part of the special regimes.

Fintech Sector: Crowdfunding institutions would be required to withhold and remit the corresponding Income Tax (20%) and VAT (16%) on the transactions in which they act as intermediaries, and to issue tax receipts for these withholdings. For further details, see our bulletin on this topic at www.jadelrio.com.

IEPS (Special Tax on Production and Services)

• Manufactured tobacco. The ad valorem IEPS on cigarettes, cigars, and other manufactured tobacco would increase from 160% to 200%. For cigars and other manufactured tobacco made entirely by hand, the rate would rise from 30.4% to 32%, with a specific per-cigarette quota of MXN 0.8516 for fiscal year 2026.

Additionally, the sale in Mexico or the import of other products containing nicotine would be taxed at 200%, with a specific quota based on the nicotine content in milligrams.

• Flavored beverages with added sweeteners. The current specific quota per liter would increase from MXN 1.6451 to MXN 3.0818. The definition of flavored beverages would expressly include those with added sweeteners.
• Gambling and lotteries. The applicable rate would increase from 30% to 50%. In addition, a 50% rate would apply to online or electronic gambling and lotteries carried out directly by the digital service provider or through domestic or foreign intermediation platforms.

CFF (Federal Fiscal Code)

• Maximum period to cancel invoices (CFDI). It is proposed to establish that taxpayers may cancel the internet digital tax invoices (CFDI) they issue no later than the month in which the annual Income Tax (ISR) return for the fiscal year must be filed.
• Temporary restriction of the digital seal certificate (CSD) for invoicing. A new ground is added to temporarily restrict the digital seal certificate when taxpayers have final tax liabilities that have not been paid in full, including surcharges and ancillary charges.
• Real-time review of digital platforms. Digital serves providers would be required to grant the tax authorities permanent, online, real-time access to the information in their systems or records related to the digital service transactions they provide.
• Strengthening of auditing powers. Taxpayers undergoing an audit who seek to regularize their tax situation may pay their customs obligations in installments.
• Increased enforcement and modernization. The proposal also contemplates enhanced oversight, use of digital tools to facilitate compliance, customs modernization, and efforts to combat smuggling and tax evasion.
• Combat “fake tax invoices (CFDI).” The proposed measures include:
  • Cancellation/restriction of the CSD if the presumption is not refuted, and a limit for CFDI cancellation up to the month of the annual ISR return for the year of issuance.
  • Allow the tax authority to verify existence under any audit power; on-site visits to detect simulation with photo/audio/video as evidence; outside of those powers, the authority could request reports, accounting and financial information (including account statements from the entire financial system).
  • Procedure and sanctions: immediate suspension of invoice issuance; a resolution period of no more than 24 business days; and publication on the SAT (Tax Administration Service) and DOF (Official Gazette of the Federation) websites. Third parties would have 30 days to correct their tax situation; otherwise, their CSD would be restricted.

It is important to note that, if any of these scenarios apply, criminal penalties would be imposed as follows: 2–9 years (false CFDI), 3–6 years (false data/documents), 5–8 years (acts akin to smuggling).

Legislative Path for the 2026 Economic Package

J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics  contained in this agreement.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com